Mississippi Senate working on own version of tax relief

A $446.6 million tax relief package is in the works in the Mississippi Senate.

Lt. Gov. Delbert Hosemann said Senate Finance chairman Josh Harkins is working on proposed legislation that would provide tax relief to Mississippi workers, as first reported by WJTV.

Taking to Twitter, the lieutenant governor said, “Chairman Harkins’ $446.6M tax relief package includes the elimination of the 4% tax bracket, a reduction in the grocery tax to 5%, the elimination of the state’s fees on car tags, and a rebate of up to $1,000 for those with tax liability.”

The announcement of the Senate’s proposal comes three weeks after the House ratified the Mississippi Tax Freedom Act of 2022, which passed by a 96-12 vote.

“We have excess revenue and we need to return some of that money to taxpayers – without tax increases,” Hosemann said on Twitter. “We also need to continue to trim the fat and fund core government services, including education and infrastructure.”

The Senate proposal, according to WJTV, features decreasing the grocery tax from 7% to 5% in a move that would save taxpayers $118.4 million. Eliminating the state fee on car tags would save an additional $13.3 million. The tax rebate for residents with tax liability would save $130 million and removing the 4% tax bracket comes at a cost of $185 million.

Rep. Trey Lamar, R-Lafayette, released a statement on Twitter, urging Senate leadership to work with the House and Gov. Tate Reeves on eliminating the income tax for state residents.

“Last year the House pushed for the elimination of the punitive tax on work in Mississippi and the Senate chose not to act,” Lamar said. “Again, this year the House, working alongside Governor Tate Reeves, has overwhelmingly passed transformative, bipartisan elimination of the tax on work in Mississippi and now the Senate has followed suit with their own plan. Although it pales in comparison to the transformative tax reform that Mississippi needs, the Senate’s initial effort is a giant first step for them and is to be commended.”

Lamar said by eliminating the income tax, the state’s residents would have more capital to invest in their families, church, and communities, and asked Senate colleagues “to not stop with their initial step” and “work with Gov. Reeves, Speaker Gunn, and House leadership” to fully eliminate the tax.

Douglas Carswell, who serves as president and chief executive officer of the Mississippi Center for Public Policy, said the organization welcomes the proposal outlined in the Senate but hopes the House and Senate can reach common ground.

“Unless there is some meeting of minds, neither plan will happen,” Carswell said. “I hope that any final plan includes a commitment that we use future growth in tax revenue to finance further tax breaks. Without that, all tax breaks are ultimately only temporary.”

This article was originally posted on Mississippi Senate working on own version of tax relief